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Valuation
Normalized earnings, leasehold economics and a supportable range of value.
FBO Valuation & Appraisal
FBO valuations and appraisals: a defensible view of what your FBO is worth.
Most owners searching for an FBO appraisal are ultimately trying to answer a market question: what would a sophisticated buyer pay for the business today?
Griffin Towers develops transaction-oriented FBO valuations using normalized earnings, leasehold economics, operating performance and current market evidence — the same factors sophisticated buyers will ultimately underwrite.
Valuation or appraisal?
FBO valuation or FBO appraisal? It depends on the question you are trying to answer.
An FBO valuation and a formal appraisal are designed to answer different questions. If your objective is to understand what the business could command in a transaction, the more relevant question is generally market value — not appraised value.
Market valuation
How much is my FBO worth to a buyer?
A transaction-oriented valuation considers the economics buyers actually underwrite: normalized earnings, fuel performance, hangar income, leasehold structure, operating characteristics and current market evidence.
It is designed to establish a supportable range of value and identify the factors most likely to influence price in an actual transaction.
Typically appropriate when
- Considering a sale
- Evaluating strategic alternatives
- Establishing an owner’s view of market value
- Preparing for future buyer discussions
If the real question is “What would the market pay for my FBO?” you are usually asking for a valuation.
Formal appraisal
When do you need a formal FBO appraisal?
A formal appraisal may be appropriate when an independent appraisal is specifically required for lending, tax or estate matters, litigation, or another defined third-party purpose.
Griffin Towers does not perform formal appraisals. When an appraisal is genuinely required, we can help identify the appropriate independent appraisal resource.
Typically appropriate when
- Financing or refinancing where a lender requires one
- Estate, gift or income tax matters
- Litigation, divorce or a partnership dispute
- A buy-sell agreement or shareholder redemption
If a third party requires an independent opinion of value for the record, you are asking for an appraisal.
| Comparison | FBO valuation | FBO appraisal |
|---|---|---|
| Question it answers | What would a buyer pay for the business? | What value must be documented for a defined purpose? |
| Typical use | Considering a sale, strategic planning, buyer discussions | Lending, tax and estate matters, litigation |
| Basis | Normalized earnings, lease economics, current market evidence | Formal appraisal standards for the stated purpose |
| Output | A supportable range of value and what moves it | A formal opinion of value for a third party |
| Prepared by | Griffin Towers | An independent credentialed appraiser |
How we value an FBO
We value the business the way buyers do.
An FBO cannot be reduced reliably to a single EBITDA multiple. Sophisticated buyers examine the underlying economics of the business — fuel, hangar, leasehold and other operating lines — along with the durability of those earnings and the rights associated with the airport lease. Our analysis begins with those underlying economics and then reconciles the conclusion against current transaction evidence.
Normalized earnings
Historical performance is reconstructed to distinguish recurring operating earnings from owner-specific, discretionary and non-recurring items.
Fuel economics
Gallons, customer mix, margin, contract activity and historical trends are evaluated to understand both current contribution and future durability.
Hangar & occupancy
Hangar inventory, occupancy, rents, tenant characteristics and market positioning are analyzed independently from the fuel operation.
Leasehold position
Remaining lease term, extension rights, rental obligations, assignment provisions and other material lease characteristics can materially affect value.
Other operations
Where applicable, MRO, charter, aircraft management, flight training and other aviation businesses are evaluated on their individual economics.
Market evidence
The resulting analysis is tested against current transaction activity, relevant comparable evidence and the way active aviation buyers are underwriting similar opportunities.
The objective is not to force the business into a multiple. It is to establish where the value comes from and how defensible that value will be when a buyer begins testing it.
The deliverable
A valuation you can use — not simply a number.
A Griffin Towers valuation is designed to show not only the indicated range of value, but why the business supports that value, what could move it, and where a sophisticated buyer is likely to challenge the analysis.
The work may include
- Executive range of value
- Historical financial normalization
- Normalized EBITDA analysis
- Fuel volume and margin by category
- Hangar and lease revenue analysis
- Leasehold profile and remaining term
- Operating-line economics
- Market and competitive position
- Relevant transaction evidence
- Key value drivers and sensitivities
- Issues likely to surface during buyer diligence
The result is a clear, supportable view of value backed by the operating evidence behind it.
Griffin Towers
Range of Value
Confidential · prepared for ownership
Indicated range
$18.5–23.5M
Concluded base ≈ $21.0M
Section 2
Normalization of earnings
| Reported EBITDA | 2,418 |
| Owner compensation | 312 |
| Related-party rent | 148 |
| Non-recurring legal | 64 |
| Discontinued line | (96) |
| Normalized EBITDA | 2,846 |
$000s · trailing twelve months
Section 4
Revenue by line
Key sensitivities
Lease termFuel marginHangar occupancy
Illustrative valuation excerpt
What buyers price
The factors that move an FBO’s value.
Two FBOs with similar earnings can command very different values. The difference is often found beneath the headline EBITDA number.
01
Ground lease
Remaining term, extension rights, airport rent, assignment provisions and change-of-control requirements can significantly affect buyer appetite and value.
02
Fuel
Volume matters, but so do margin, customer mix, commercial activity, transient demand and the durability of historical gallons.
03
Hangar economics
Inventory, occupancy, rental rates, tenant profile and local demand can create significant value independent of fuel operations.
04
Earnings quality
Buyers distinguish sustainable operating earnings from temporary performance, owner-specific expenses and aggressive adjustments.
05
Market position
Airport dynamics, competitive position, based aircraft, local demand and barriers to entry influence both risk and future opportunity.
06
Business mix
MRO, charter, aircraft management, flight training and other operations can add value — but buyers will underwrite each business line differently.
From value to market
If you decide to sell, the valuation becomes the foundation of the process.
A useful valuation does more than establish a range. It identifies where value is supported, where buyers are likely to push, which issues should be addressed before market and how the business can be positioned most effectively.
Because Griffin Towers approaches valuation through a transaction lens, much of that work carries naturally into a future sale process — from financial preparation and positioning through buyer discussions, negotiation and diligence.
The valuation stands on its own. There is no requirement to take the business to market. But when an owner does decide to sell, beginning with a defensible understanding of value creates a considerably stronger starting position.
The path forward
Where a valuation sits in the arc of a transaction.
A valuation is a complete piece of work on its own. It is also the first step of the only process that converts an FBO into cash — and the step that determines how strong a position an owner negotiates from.
Valuation
6–8 months to close
Close · Funded
Phase 1
Preparation & Positioning
Financial normalization carried forward, CIM and data room built.
Phase 2
Market Outreach
CIM released under NDA, qualified buyers approached, indications assessed.
Phase 3
Presentations & Bidding
Site visits, diligence Q&A, letters of intent received and terms negotiated.
Phase 4
Diligence & Close
Quality of earnings, Phase I, sponsor consent, purchase agreement, funded.
Common questions
FBO valuation and appraisal: common questions.
What is the difference between an FBO valuation and an FBO appraisal?
An FBO valuation estimates what a buyer would likely pay for the business in a transaction, based on normalized earnings, fuel performance, hangar income, the ground lease and current market evidence. An FBO appraisal is a formal opinion of value prepared by a credentialed appraiser for a specific purpose, such as lending, tax, estate or litigation.
How much is my FBO worth?
An FBO is worth what a qualified buyer will underwrite: normalized earnings, the quality of the fuel and hangar income, and the years remaining on the ground lease. An FBO business valuation turns those factors into a supportable range of value.
When do I need a formal FBO appraisal?
When a lender, the IRS, a court or another third party requires an independent appraisal. If the question is what the business could sell for, a valuation usually answers it more directly.
Does Griffin Towers perform FBO appraisals?
No. Griffin Towers prepares transaction-oriented FBO valuations. When a formal appraisal is required, we help identify the right independent appraiser.
What drives the value of an FBO?
The ground lease, fuel volume and margin, hangar economics, earnings quality, market position and business mix. Buyers price each one, and most can be strengthened before a sale.
The firm
Senior principals, involved throughout.
Griffin Towers is an independent advisory firm focused on aviation transactions and select strategic assignments.
The practice is intentionally focused. Engagements are led directly by senior principals from initial analysis and valuation through negotiation, diligence and execution.
We favor preparation, discretion and disciplined judgment over transaction volume.
Firm overview
A private overview of the firm, representative experience and selected capabilities is available upon request.
Request firm overviewHow we work
Direct involvement
Senior advisors remain engaged throughout the assignment.
Evidence before position
Valuation and strategy begin with the underlying economics.
Discretion by default
Information, outreach and counterpart communication are controlled throughout.
Contact
Engage us
Begin a confidential conversation.
If you are considering a sale, acquisition, valuation or strategic aviation assignment, tell us what you are working through.
Initial conversations are confidential and handled directly by the firm.
By telephone
+1 720 504 6668
Office
2040 Balsam Drive
Boulder, Colorado 80304
Boulder, Colorado 80304